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The
Community provisions that are
applicable to imports affected by
dumping are Decisions 456, when
the imports affected by dumping
are native to an Andean Community
Member Country and 283, when those
products originated in a third
country and affect the products
exported from one Member Country
to another, or when two or more
Member Countries are affected by
dumping practices and the product
is subject to the Common External
Tariff (CET).
Dumping is a price discrimination
practice that occurs when a
company exports its products to
another country at prices lower
than those at which the products
are sold in its domestic market.
Dumping occurs when, in the course
of normal trading operations, a
product’s export price is lower
than the domestic price of a
similar product intended for
consumption in the exporting
country.
Community provisions stipulate
that specific adjustments must be
made to both the export price and
the selling price in the domestic
market of the exporting country,
so that the two values can be
compared fairly. These adjustments
are needed because product prices
vary in each operation due to
differences in the selling
conditions and terms in the
domestic and export markets, such
as applicable taxes and duties and
different physical characteristics,
among other things.
The
dumping margin is the difference
between the adjusted domestic
price and the adjusted export
price. A dumping margin of less
than a 5 percent difference in
export price in the trade of
products native to a Member
Country or of less than 2 percent
in that of products originating in
a third country, is considered
insignificant.
Another condition that must be met
in the case of imports affected by
dumping is that the national
production of the affected Member
Country that is intended for the
domestic market or for export, as
the case may be, must also be
seriously harmed or in danger of
serious harm because of the
dumping.
The
measure to be taken in this case
is the application of so-called "anti-dumping
duties" to each one of the
exporters investigated, but not
necessarily to all of the products
imported from the country of
origin of the exporter
investigated.
The
investigation period is six months,
which can be extended for a
further two months in the case of
complaints made under Decision 456
and four months, which can be
extended for a further two months,
in the case of complaints made
pursuant to
Decision 283.
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